“There will be a new brand and we will offer our existing franchisees to join the new system on new business terms, which they can accept or reject,” TASS news agency quoted McDonald’s Russia General Director Oleg Paroev as saying on Friday. “It is in everyone’s interest to launch the new brand as soon as possible.”
The fast-food company is selling its restaurants in Russia to one of its local licensees, who will rebrand them, ending more than three decades of “Golden Arches” in the country. McDonald’s said it will retain its trademarks.
“The brand itself, under which (they) work, will have to change. They won’t be able to work under McDonald’s,” Paroev said. “The rights to the brand are in the hands of the corporation.
McDonald’s restaurants in Russia will be sold to Alexander Govor, who runs a 25-restaurant franchise operation through his firm GiD LLC.
Paroev didn’t say what might happen to franchisees that don’t adopt the new brand, but his comments suggested McDonald’s Russia’s other big franchisee, Rosinter Restaurants, may have to rename its restaurants, cease operations or come up with a plan. alternative. Rosinter declined to comment.
